Ybrant Digital is a digital media marketing company with offices in over 20 countries. The potential market for this business is global. Ybrant is one of a kind company on the indian stock market. The digital channels on which advertising and marketing solutions are offered are Display, Social, Mobile, Video and Search. For more info check, http://www.ybrantdigital.com
The future prospects and growth of this company is directly related to the increased usage of the internet and its enhanced influence across the world. Increased adaptation of smart phones and mobile applications has a positive impact and directly benefits the company.
PRESENT DAY NUMBERS
CMP on Day30 Mar2014: Rs 15.96 Market cap: 760 crores BV: 21 FV: 2
Debt: Net debt 160 cr including working capital of 100 cr (as on Dec 2013)
(From audited consolidated financial results FY2013)
Revenue: 1601 cr (FY12 1263 cr) Net profit: 51 cr (FY12 191 cr) EPS: 1.07 (EPS FY12: 4.03)
(From unaudited consolidated financial results Q3FY2013)
Revenue Q3FY14: 462 cr (Q3FY12 423 cr) Net profit: 66 cr (Q3FY12 60 cr) EPS: 1.39
BRIEF HISTORY
The company was originally incorporated in June 2000 as Ybrant Technologies Inc. Name changed to 'Ybrant Digital' in May 2008. The company then had a reverse merger with LGS Global Ltd, a BSE listed company in an all-stock transaction and thereby established its presence in the indian stock market in the year 2012.
MULTIBAGGER POTENTIAL
Strategic acquisitions:
1. Ybrant Digital acquires Serbia based email marketing platform 'Volo MP' and US based 'Medios One' in the year 2006
2. Acquires US based online ad network company 'Ad Dynamix' for USD 10 million and Israel based 'Oridian' for USD 13 million in 2007
3. Further acquires Argentina company 'Dream Ad' and Australian company 'Max Interactive' in all cash deals in 2009. Max Interactive is strong in Asia Pacific.
4. Acquires US based Lycos Inc for USD 36 million in the year 2010, resulting in a wholly owned subsidiary. Lycos, headquartered in Massachusetts US, is a prominent internet brand with diverse businesses such as Gamesville.com, Tripod.com, HotBot.com and Angelfire.com
5. Acquires minority stake in Israel based 'Web 3.0'in April 2011
6. The company acquires PriceGrabber, LowerMyBills and ClassesUSA.com owned by UK based Experian for USD 175 million in the year 2012
MY TAKE
Digital revolution is here to stay. Internet, Search, Social media, Web portals, games and web applications will find increased usage all across the world. Increased adaptation and multitude of apps will keep smart phone and mobile phone usage on the growth path. All these will compel the corporations and companies across the world to advertise on the internet and mobile networks. The wallet share for advertising and marketing revenue by the new media will continue to increase in the coming years.
Due to the multitude of acquisitions over the last few years, and a foothold in diverse and significant space of Digital marketing and advertising; Ybrant Digital is well positioned to grow its revenues across multiple geographies and thereby increase its margins and profitability.
A high potential multibagger!!
Disclosure: Ybrant Digital is a part of my core holdings (and I intend to add more)
The future prospects and growth of this company is directly related to the increased usage of the internet and its enhanced influence across the world. Increased adaptation of smart phones and mobile applications has a positive impact and directly benefits the company.
PRESENT DAY NUMBERS
CMP on Day30 Mar2014: Rs 15.96 Market cap: 760 crores BV: 21 FV: 2
Debt: Net debt 160 cr including working capital of 100 cr (as on Dec 2013)
(From audited consolidated financial results FY2013)
Revenue: 1601 cr (FY12 1263 cr) Net profit: 51 cr (FY12 191 cr) EPS: 1.07 (EPS FY12: 4.03)
(From unaudited consolidated financial results Q3FY2013)
Revenue Q3FY14: 462 cr (Q3FY12 423 cr) Net profit: 66 cr (Q3FY12 60 cr) EPS: 1.39
BRIEF HISTORY
The company was originally incorporated in June 2000 as Ybrant Technologies Inc. Name changed to 'Ybrant Digital' in May 2008. The company then had a reverse merger with LGS Global Ltd, a BSE listed company in an all-stock transaction and thereby established its presence in the indian stock market in the year 2012.
MULTIBAGGER POTENTIAL
Strategic acquisitions:
1. Ybrant Digital acquires Serbia based email marketing platform 'Volo MP' and US based 'Medios One' in the year 2006
2. Acquires US based online ad network company 'Ad Dynamix' for USD 10 million and Israel based 'Oridian' for USD 13 million in 2007
3. Further acquires Argentina company 'Dream Ad' and Australian company 'Max Interactive' in all cash deals in 2009. Max Interactive is strong in Asia Pacific.
4. Acquires US based Lycos Inc for USD 36 million in the year 2010, resulting in a wholly owned subsidiary. Lycos, headquartered in Massachusetts US, is a prominent internet brand with diverse businesses such as Gamesville.com, Tripod.com, HotBot.com and Angelfire.com
5. Acquires minority stake in Israel based 'Web 3.0'in April 2011
6. The company acquires PriceGrabber, LowerMyBills and ClassesUSA.com owned by UK based Experian for USD 175 million in the year 2012
MY TAKE
Digital revolution is here to stay. Internet, Search, Social media, Web portals, games and web applications will find increased usage all across the world. Increased adaptation and multitude of apps will keep smart phone and mobile phone usage on the growth path. All these will compel the corporations and companies across the world to advertise on the internet and mobile networks. The wallet share for advertising and marketing revenue by the new media will continue to increase in the coming years.
Due to the multitude of acquisitions over the last few years, and a foothold in diverse and significant space of Digital marketing and advertising; Ybrant Digital is well positioned to grow its revenues across multiple geographies and thereby increase its margins and profitability.
A high potential multibagger!!
Disclosure: Ybrant Digital is a part of my core holdings (and I intend to add more)
